3 Bullish Altcoins Predicted to Outperform Bitcoin in August 2024

3 months ago 34

Altcoin season typically begins when at least 75% of the top 50 altcoins outperform Bitcoin (BTC) over a three-month period.

Currently, only 18 of these assets have outperformed BTC in the last 90 days, indicating that an altcoin season is unlikely in the near future. However, three altcoins—Book of Meme (BOME), Bitcoin Cash (BCH), and Aave (AAVE)—show potential to outperform Bitcoin in August.

Book of Meme Trades Above Resistance and Key Moving Average

On Monday, the price of the Solana-based meme coin Book of Meme (BOME) broke above the upper line of its horizontal channel, which has formed resistance since June 29. Since then, its value has risen by almost 10%.

When an asset breaks above the upper line of a horizontal channel, it indicates a bullish breakout. It signals increased buying pressure and a potential for a continued uptrend. Traders often interpret it as a signal that market sentiment has shifted positively and that further price growth is underway.

Also, BOME’s price currently trades above its 20-day exponential moving average (EMA), which measures its average price over the past 20 days. When an asset’s price rallies above this level, it signals that its short-term trend is strengthening and buying pressure has outpaced token sell-offs.

If this trend persists in the BOME market, its price may climb to $0.011, a price level it last reached on June 7.

Bitcoin Cash (BCH) Enjoys Significant Bullish Bias

The value of BCH, the native coin of the peer-to-peer electronic cash system, Bitcoin Cash, has surged by 15% in the past seven days. During the intraday trading session on Monday, the altcoin climbed to a monthly high of $453.80.

While BCH’s price has since corrected by 4%, positive sentiments continue to trail the altcoin. At press time, it exchanged hands at $436.11.

BCH’s rising Relative Strength Index (RSI) confirms the bullish bias toward the altcoin. It is currently at 65.36, signaling that buying activity significantly outweighs selling pressure among market participants.

Also, BCH’s Chaikin Money Floe (CMF), which measures the flow of money into the asset, is in an uptrend and above the zero line at 0.16. When an asset’s CMF value is above zero, it signals liquidity inflow into the market.

A combined reading of BCH’s price rally and its positive CMF confirms the possibility of further price growth. If the current trend is maintained, the coin’s price will rally to $453.10.

Aave (AAVE) Sees Uptick in Open Interest

The price of AAVE, the governance token of leading lending protocol Aave, has also surged by double digits in the past seven days. Exchanging hands at $105.62 at press time, the token‘s price has grown by 11% during that period.

This price rally has led to an uptick in activity in AAVE’s derivatives market, reflected by a rising futures open interest. According to Coinglass, the token’s futures open interest has increased 36% in the past seven days. At press time, AAVE’s futures open interest is $76 million.

This indicates a rise in the number of new traders that have entered AAVE’s futures markets to open new positions in the past week.

The predominantly positive funding rate that has since trailed AAVE shows that most new traders have opened long positions. This is a bullish signal, as it means there are more traders betting on a continued price rally.